The Contractors' Federation agrees with the Finance Minister that many construction jobs would have been lost if it had not been for government investment.
Bill English says government spending on infrastructure will account for most non-residential building spending during the next three years, and this has helped save many jobs.
Contractors Federation president David Jewell says Government investment has helped prevent job losses in the industry.
He says despite work being lean at the moment, the industry has confidence more is on the horizon and that certainty is very important.
Mr English says he will continue to keep a tight hold on Government spending, despite an improvement in the Government's books.
He told Morning Report the Government is funding up to 80% of all non-residential construction and will run large deficits for the next three or four years to pay for it.
He says building up the nation's infrastructure is more of a priority than any other Government expenditure.
New Treasury figures show the Government is on course to reduce last year's operating deficit by up to $8 billion.
In the 11 months to the end of May, the Government's operating deficit was $2.1 billion, well below the deficit of $10.5 billion for the previous full financial year.
Mr English says the Government is committed to fiscal discipline and restraint in the public sector is only just beginning.
Govt urged to ease spending cuts - CTU
The Council of Trade Unions says the Government should ease its drive to cut spending, following better than expected deficit figures.
Mr English says the Government is committed to fiscal discipline and restraint in the public sector is only just beginning.
But CTU economist Bill Rosenberg says cuts in Government spending risk tipping the economy back into recession.
He says Mr English has scope to move.
Mr Rosenberg says there is general agreement that the economic recovery is weak and faster cuts in government spending risk tipping the economy back into recession.
Labour says the Government has got its spending priorities wrong.
Party leader Phil Goff says the Government is targetting its austerity measures at the wrong sectors.
Business NZ view
Business New Zealand urges the Government to hold the line on spending restraints.
Chief executive Phil O'Reilly says it is clear that the Government's plan is working and it should be redoubling its efforts, rather than encouraging more spending.
